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CS Professional · Arbitration, Mediation and Conciliation · Challenge to Award and Appeals

In an arbitration, claimant Desai Motors withdraws its claim against Verma Autos. Verma Autos objects to termination, showing a legitimate interest in obtaining a final settlement of the dispute through a counterclaim, and the tribunal recognises that interest. What follows under the Act?

The proceedings continue. Under Section 32(2)(a), withdrawal of the claim leads to a termination order unless the respondent objects and the tribunal recognises a legitimate interest in a final settlement. Since that exception applies, the tribunal's mandate also continues.

  1. AThe tribunal must terminate the proceedings by order because the claimant withdrew
  2. BThe proceedings continue and are not terminated on the withdrawalCorrect
  3. CThe mandate of the tribunal ends immediately under Section 15
  4. DThe Court must take over the dispute

Explanation

Under Section 32(2)(a), the tribunal issues a termination order on withdrawal of the claim unless the respondent objects and the tribunal recognises the respondent's legitimate interest in a final settlement. Here that exception applies, so no termination order is issued and the mandate (Section 32(3)) continues.

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